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Yaoundé - 23 August 2019 -
Hydrocarbons

Fuel pump subsidy forecasted to grow by XAF 6bln this year

Fuel pump subsidy forecasted to grow by XAF 6bln this year
  • Comments   -   Wednesday, 15 May 2019 17:06

(Business in Cameroon) - Government transfers and subsidies to public entities are expected to improve by 7.3% this year. The 2019 Finance Act provides for XAF512.3 billion in favor of these institutions, against XAF476.5 billion the previous year, this makes an expected difference of XAF35.8 billion between the two periods.

This augmentation, the Finance Act indicates, follows increases in subsidy to the national oil refining company (Sonara). “Subsidies to Sonara for fuel pump price support increased by XAF6.2 billion to XAF215.2 billion in 2019.”

If the sum is fully spent, Cameroon would face a 2012-like situation when the country spent XAF400 billion in fuel pump subsidy ; a situation in which financial partners such as the International Monetary Fund and the World Bank have a negative view.

These Bretton Wood institutions, insist that 74% of fuel subsidies benefits the wealthiest people on the Super, while the poor receive only 13% of the subsidies on kerosene. Yet, the Cameroonian government said the fuel pump subsidy is a welfare reform.

Sylvain Andzongo

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